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ASIC has warned banks they must acknowledge clawbacks of broker commissions when considering termination fees for home loans.

It made the recommendations in its early termination fee report, made public yesterday.

ASIC looked at factors which could increase the likelihood of a bank’s termination fee being declared ‘unconscionable.’

They included fees that did not reduce over time, were calculated by reference to the loan amount and, crucially, did not account for clawbacks of broker commissions due to the termination of the loan.

Interestingly, the report found less than 1% of consumers who were charged an early termination fee made a complaint.

‘While early termination fees have been prohibited on new loans from 1 July 2011, it is important that lenders comply with the law for old loans on which such fees are still payable,’ said ASIC commissioner Peter Kell.